Buying into Berkshire Hathaway isn't like buying a normal stock. Honestly, it’s more like buying a piece of a fortress that happens to have a world-class hedge fund attached to the hip. If you’ve been watching the berkshire hathaway share price lately, you’ve probably noticed something weird. The market has been hitting all-time highs, yet the "Oracle of Omaha" is sitting on a mountain of cash so large it could basically fund a small country.
As of early 2026, the Class A shares (BRK.A) are trading around $738,000, while the more accessible Class B shares (BRK.B) hover near $493. But the price tag isn't the story. The story is why Warren Buffett, at 95, spent the tail end of 2025 selling off chunks of Apple and Bank of America to build a record $381.7 billion cash pile.
Why the Berkshire Hathaway Share Price Decoupled from the Tech Bull Run
For most of 2025, the S&P 500 was busy sprinting ahead, fueled by AI mania and the "Fateful Eight" tech giants. Berkshire, meanwhile, took a different path. It didn't just trail the market; it actively pulled back from it.
People get frustrated when Berkshire doesn't moon alongside Nvidia. But that’s the point. The berkshire hathaway share price often feels "boring" because the company is designed to survive a 50% market crash, not to chase a 50% rally. Buffett’s final shareholder letter in late 2025 was a bit of a reality check. He basically said that "nothing looks compelling" at current valuations.
When the guy who invented value investing says the market is too expensive to buy, it’s worth listening.
The Greg Abel Transition: End of an Era?
At the end of 2025, Warren Buffett officially stepped down as CEO, handing the reins to Greg Abel. This is a massive deal. For decades, a portion of the berkshire hathaway share price was essentially a "Buffett Premium"—investors paying extra just for his brain.
Now, we're seeing if that premium holds up. Abel is a different beast. He’s an operator, a guy who knows the energy and railroad businesses inside and out. Some analysts, like Greggory Warren at Morningstar, argue the intrinsic value hasn't changed. They estimate the fair value for Class B shares is still north of $510.
The $382 Billion Elephant in the Room
Let’s talk about that cash. $381.7 billion.
That isn't just "savings." It’s a strategic weapon. While the berkshire hathaway share price might seem stagnant to some, that cash is currently parked in short-term Treasuries earning over 5%. That means Berkshire is literally making about $20 billion a year just by doing nothing.
- Net Seller Status: Berkshire has been a net seller of stocks for 12 straight quarters.
- The Apple Trim: They slashed their Apple position significantly in 2025, though they still hold over $60 billion worth.
- New Moves: Interestingly, they've dipped their toes into Alphabet (Google) and Chubb, showing they aren't totally bearish on everything.
If the market takes a dive in 2026, Berkshire is the only player on the field with a checkbook large enough to buy entire Fortune 500 companies in one go. That "dry powder" is the ultimate insurance policy for shareholders.
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Class A vs. Class B: Which One Actually Matters?
If you’re looking at the berkshire hathaway share price, you need to know the difference between the "heavyweight" and the "retail" versions.
Class A (BRK.A) shares have never split. Not once. Buffett wanted to attract long-term "partners," not speculators. These shares give you the most voting power and can be converted into Class B shares at any time.
Class B (BRK.B) shares are what most of us own. One Class A share is equal to 1,500 Class B shares in terms of economic interest. The price movements are almost always identical in percentage terms, so don't worry about "missing out" if you can't drop $700k on a single share.
What Most People Get Wrong About the Valuation
A common mistake is looking at Berkshire's P/E ratio. Because of accounting rules (GAAP), Berkshire has to report the "unrealized gains" of its stock portfolio as earnings. If the stock market goes up, Berkshire's "earnings" look huge. If the market dips, it looks like they lost billions.
It’s mostly noise.
Instead, savvy investors look at Operating Earnings—the actual cash coming in from Geico, BNSF Railway, and Berkshire Energy. In Q3 2025, these operating earnings surged 34% to $13.5 billion. That is the engine driving the berkshire hathaway share price over the long haul.
Actionable Insights: How to Play Berkshire in 2026
If you’re considering adding Berkshire to your portfolio or holding what you have, keep these nuances in mind:
- Watch the Cash, Not the Price: The real signal isn't whether the stock hits $500. It’s whether Abel and Buffett (who still advises) start buying. If they spend $50 billion on a new acquisition, that's a massive "Buy" signal for the broader economy.
- The Dividend Debate: There is growing chatter that Berkshire might finally initiate a dividend in late 2026. With that much cash and fewer "cheap" companies to buy, shareholders are getting restless. A dividend announcement would likely cause a massive spike in the berkshire hathaway share price.
- Use it as a Hedge: If you’re heavy on tech and worried about a 2026 correction, Berkshire acts as a natural stabilizer. It historically outperforms during "sour" years because it holds so much cash and "old economy" businesses that people still need when the chips are down.
Next Steps for Investors
To truly understand if the current berkshire hathaway share price is a bargain, stop looking at the ticker and start looking at the Price-to-Book (P/B) ratio. Historically, Buffett liked to buy back shares when the P/B was around 1.2. Currently, it's hovering closer to 1.5.
Wait for the 2025 Annual Report, usually released in late February 2026. This will be the first report of the "Post-Buffett CEO" era. Pay close attention to the section on share repurchases; if the company isn't buying back its own stock, it's a sign they think the shares are currently "fairly valued" rather than a steal.
Keep your eyes on the interest rates for 10-year Treasuries as well. As long as Berkshire can earn 5% on its cash with zero risk, they are under very little pressure to gamble on overpriced tech stocks. Patience is the name of the game here.
Primary Source Reference:
- Berkshire Hathaway 2025 Third Quarter Report (Form 10-Q)
- Morningstar Equity Research: Berkshire Hathaway (January 2026 Update)
- Nasdaq/Motley Fool Analysis: "Warren Buffett's Final Message to Shareholders" (November 2025)